June 21 (Bloomberg) -- Taiwan’s dollar rebounded from the lowest level in three weeks after the government reported export orders that beat analysts’ estimates, boosting optimism the island’s economic recovery remains intact.
Orders for goods climbed 11.5 percent in May from a year earlier, compared with a 10.1 percent gain the previous month, the Ministry of Economic Affairs said yesterday. The median of 14 estimates in a Bloomberg News survey was for a 9.45 percent increase. Asian currencies recovered from yesterday’s losses after Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said a solution to Greece’s debt crisis will be found.
“Looks like the problem in Europe has mitigated temporarily,” said Tarsicio Tong, a Taipei-based currency trader at Union Bank of Taiwan. “Exporters continue to sell the U.S. dollar, which is supporting the local currency.”
Taiwan’s dollar strengthened 0.2 percent to NT$28.949 against its U.S. counterpart as of the 4 p.m. close in Taipei, according to Taipei Forex Inc. It reached NT$29.005 on June 17, the weakest level in three weeks.
Government bonds declined. The yield on the 1.375 percent notes due March 2021, the most-traded securities, rose two basis points to 1.49 percent, according to Gretai Securities Market.
The overnight money-market rate dropped for a second day. The rate, which measures interbank funding availability, declined one basis point, or 0.01 percentage point, to 0.33 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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